Authorities are analyzing existing Korean law, following the finding that current law leaves authorities ill-equipped to deal with cryptocurrency Ponzi schemes.

The government has been cracking down on illegal outfits like (OneCoin), but their efforts are inhibited by the fact that existing legislation (Act on the Regulation of Conducting Fund-Raising Business Without Permission) does not include the terms and relevant detail pertaining to modern financial instruments like cryptocurrencies.

The task force plans to remedy this lapse by amending the regulations to include “cryptocurrency exchange and simulated cryptocurrency exchange”.

Punishment will also become more severe, with the maximum prison term and fine levied increasing from the previous five years and 50 million won to 10 years and 500 million won.

The task force is also planning on including provisions to allow for the confiscation of profits generated from criminal activity.